Key Takeaways Global defense spending is set to hit $2.6T by 2026, helping Aerospace & Defense stocks to outperform.LMT, RTX and NOC posted resilient Q4 results, supported by strong revenues and record backlogs.ETFs like ITA, XAR and PPA offer diversified exposure to rising defense budgets and earnings momentum.Geopolitical tensions have accounted for the bulk of market volatility so far in 2026, from U.S. military actions in Syria and Venezuela earlier in January to renewed risk of an escalating U.S.-Iran ...